Wholesale Prices Rise In October.

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Wholesale prices rose 1.1 percent in October, the largest advance since January 2001, the Labor Department reported today. The big jump in the Producer Price Index, which measures prices of goods before they reach stores shelves, came after a minimal 0.1 percent rise in September and a flat reading in August. Worried that the economic recovery might be in danger of stalling out, the Federal Reserve last week cut a key interest rate by a half a percentage point marking the first rate reduction of this year and the twelfth since January 2001. Meanwhile, the U.S. industrial output posted its sharpest drop in more than a year in October. The Federal Reserve said October's larger-than-expected 0.8 percent decline was the largest since a 1.1 percent drop seen in September 2001.